company and markerting strategy partnering to build customer relationship (ict university cameroon)...

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Company and Marketing Strategy: Partnering to Build Customer Relationships

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Roadmap: Previewing the Concepts

1. Explain strategic planning2. Describe business portfolios and growth

strategies3. Detail marketing’s role in strategic planning4. Describe elements of customer-driven

marketing strategy5. List the marketing management functions

Case StudyNIKENIKE – Strategy: Then and Now – Strategy: Then and Now

Early Days• Characterized by “seat of the pants” management.• Innovative sneaker tread drove early success.• Technological product superiority, big-name endorsements, and “Just

Do It” ads revolutionized sport marketing. • 1980s – 1990s: Nike leverages brand strength into new product areas.

Late 1990s - Present• Changes in consumer shoe preference, declining product innovation, and negative PR plague Nike.• Anti-establishment image no longer works: brand backlash occurs.• Strategic planning is embraced & Nike focuses on innovation & exploring new market opportunities.• Nike has global success

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What is Strategic Planning?

Strategic planning involves adapting the firm to take advantage of opportunities in its constantly changing environment.Strategic planning helps a firm to maintain a strategic fit between its goals and capabilities and its changing marketing opportunities.

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Goal 1: Explain strategic planning

Steps in Strategic Planning 2 - 5

Marketing Management2 - 6

A mission statement asks.. What is our

business? Who is the

customer? What do

consumers value? What should our

business be?

A mission statement should be: An “invisible hand” Neither too narrow

nor too broad Fitting of market

environment Based on distinctive

competencies Motivating

Market-Oriented Mission

Goal 1: Explain strategic planning

Let’s Talk!• In 2002

Microsoft’s mission was "To empower people through great software -- any time, any place, and on any device.”

• The mission statement now reads, "At Microsoft, we work to help people and businesses throughout the world realize their full potential.”

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The Mission Statement

• A statement of the organization’s purpose.• What it wants to

accomplish in the larger environment.

• Should be market oriented and defined in terms of customer needs

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Setting Company Objectives and Goals

• The mission should be converted to supporting objectives at each level of management.• The mission leads to

setting a hierarchy of objectives.• Business objectives• Marketing

objectives

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Setting Company Objectives and Goals

• Business objectives • Build profitable

customer relationships• Invest in research• Improve profits

• Marketing objectives• Increase market

share• Create local

partnerships• Increase

promotion

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The Business Portfolio

A business portfolio is the collection of businesses and products that make up the company

Business portfolio planning involves two steps:

1. Analyzing the current business portfolio

2. Shaping the future portfolio by developing strategies

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Goal 2: Describe business portfolios and growth strategies

Portfolio Analysis

• Evaluation of the products and businesses that make up the company by the management• Steps:

• Identifying the strategic business units (SBUs)• Assessing the attractiveness of its various

SBUs and deciding the support each SBU deserves

• The purpose is to direct resources toward more profitable businesses while phasing out or dropping weaker ones

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Marketing Management 2 - 13

Build Increase market

share Works well for

question marks Hold

Preserve market share

Good for cash cow

Harvest Increases short-

term cash flow Good for weak

cash cows, question marks and dogs

Divest Sell or liquidate Good for dogs and

question marks

Analyzing the Current Business Portfolio

Goal 2: Describe business portfolios and growth strategies

The BCG Growth-Share Matrix

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Marketing’s Role in Strategic Planning• Provide a guiding philosophy• Identify attractive opportunities• Design effective strategies • Build strong value chains• Form superior value delivery networks

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Goal 3: Detail marketing's role in strategic planning

Marketing Strategy• Customers grouped

by:• Geographic• Demographic• Psychographic• Behavioral

• Market segment is a groups of consumers who respond in similar ways to marketing efforts.

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1. Market Segmentation

2. Target marketing

3. Market Positioning

StrategyStrategy

Goal 4: Describe elements of customer-driven strategy

Marketing Strategy• Evaluation of each

segment’s attractiveness• Selection of

segments with greatest long-term profitability• A company can

choose one or several segments to target

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StrategyStrategy



2. Target marketing


Marketing Strategy• The place the

product occupies in the consumer’s mind• Products are

positioned relative to competing products• Marketers look for

clear, distinctive and desirable place in positioning

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StrategyStrategy



2. Target marketing


Marketing Mix

• The marketing mix includes controllable and tactical marketing tools knows as the 4P’s

• The 4P’s include• Product• Place• Promotion• Price

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Managing the Marketing Effort

• Finding opportunities• Avoiding threats• Understanding strengths• Analyzing weaknesses

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Goal 5: List the marketing management functions

• Analysis• Planning• Implementation• Control

Marketing FunctionsMarketing Functions


• Marketing plans include: • Executive summary• Analysis of current

situation• Objectives• Targets and positioning• Marketing mix• Budget• Controls

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• Plans are turned into action with day-to-day activities

• Good implementation is a challenge

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• Evaluation of the results of marketing strategies

• Checks for differences between goals and performance

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Measuring Effectiveness

• Return on marketing (marketing ROI)• The net return from a marketing investment

divided by the costs of the investments

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